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  • Maturity Benefits For Different Term Life Insurance Plans

    Term insurance plans are basically protection plans. They are particularly designed to protect your family against unforeseen circumstances. These are three types of term insurance plans available in India which include - increasing benefit, level benefit and decreasing benefit. A term insurance plans is a must for the bread winner of a family and for those whose health is not in a good condition.

    Maturity Benefits

    Maturity benefits refers to the amount received by a policyholder or nominee when a policy matures. A tem insurance policy needs to be active or in force to avail these maturity benefits. Term life insurance policies may include the followings as maturity benefits:

    • The basic sum assured.

    • Accrued guaranteed additions and vested simple reversionary bonuses (if any).

    • Terminal bonus (if applicable).

    Term Insurance With Maturity Benefit India

    The term life insurance plans with maturity benefits are slightly different form the traditional life insurance plans. Normally, a traditional term insurance policy does not offer any direct maturity benefits to the policyholder. They only provide death benefits when a policyholder dies within the policy term.

    So, if any buyer/policyholder wants to have maturity benefit, he/she can opt for a TROP (Term Return of Premium) plan. A term return of premium plan provides income replacement and refund the premiums at maturity, apart from offering all benefits of a traditional term life insurance plan. A TROP plan is a variant of pure term insurance plan and ensures maturity benefits, if the policyholder survives till the end of policy tenure.

    Key Features of Term Plans With Maturity Benefit

    The term life insurance plans with maturity benefits or term return of premium plans come with a lot of attractive features. Listed below are the key features of term life insurance plans with maturity benefits:

    Free-look period

    15 days for manually purchased policy

    30 days for policies purchased online.

    Entry Age

    Minimum entry age:18 years

    Maximum entry age: 65 years

    Grace period

    15 to 30 days based upon policy modes. Usually, 15 days for monthly mode policies and 30 days for other modes.

    Plan type

    Term insurance plans offers flexibility in terms of choosing a plan. One can choose a plan on single life basis or joint life basis.

    Premium paying term

    Single pay, Limited pay and Regular pay.

    Age at maturity

    25 year/ 65 years/ 75 years to whole life. Differ from policy to policy.

    Policy revival

    The policy can revived within two years from the date of unpaid premium.

    Premiums

    Based on sum assured and age of the applicant.

    Nomination

    Term life insurance policies with maturity benefits accept nomination.

    Premium paying frequency

    Yearly/ monthly.

    Sum Assured

    Vary from policy to policy offered by various life insurance companies.

    Policy coverage

    Death benefits and maturity benefits.

    Policy term

    Minimum- 5 years

    Maximum – 30-35 years

    Benefits of Term Insurance With Maturity Benefit

    The term life insurance plans with maturity benefits offer a number of attractive benefits which include:

    • Death Benefits: Term insurance plans offer death benefits to designated nominees. The nominees will receive these death benefits, if the life assured dies within the policy tenure.

    • Maturity Benefits: Normally, traditional life insurance policies don’t offer maturity benefits. But term return of premium life insurance policies offer maturity benefits by returning the total amount of premiums paid so far, provided a policy is continued till the end of term.

    • Tax Benefits: A policyholder can enjoy tax benefits over the premiums paid for term life insurance plans with maturity benefits. The premiums paid and the amount received are exempted from income tax assessment under section 80C and 10 (10D) of the Indian Income Tax Act, 1961.

    • Term life insurance plans with maturity benefits also offer additional riders such as Critical Illness and Accidental Death or Disability riders.

    • Term life insurance plans come at affordable premiums rates.

    Top 5 Term Insurance Plans With Maturity Benefit India

    Listed below are some of the term life insurance plans in India that come with maturity benefits.

    1. LIC Jeevan Pramukh: This is an Endowment Assurance term life insurance plan offered by Life Insurance Corporation of India. The plan provides financial protection against death throughout the policy term and provides maturity benefits, provided the policyholder holder survives till end of policy term. The policy would pay the sum assured accompanied by accrued guaranteed additions, vested simple reversionary bonuses and terminal Bonus( if any) in a lump-sum as maturity benefits.

    2. MetLife Suraksha TROP: It is a non-participating term life insurance plan offered by PNB MetLife. The plan not only provides life insurance coverage at nominal cost, it also offers the total of all premiums paid along with guaranteed additions.

    3. Max Life Premium Return Protection Plan: This is a term insurance plan with maturity benefits offered by Max Life Insurance Company. The plan not only protects your family against eventualities, it also returns all your premiums paid at maturity.

    4. Aviva iShieldPlan: This is an online non-linked non participating term life insurance plan offered by Aviva. The plan provides guaranteed survival benefits/ money back benefits at maturity which is 110% of total premiums paid.

    5. Tata AIA Life Insurance iRaksha TROP: This is an online term return of premium plan which a returns all total premiums paid, if the policyholder survives till the end of policy term.

    How to Choose The Best Term Insurance Plans With Maturity Benefits

    In order to choose the best the term life insurance plan with maturity benefits, you need to shop around and do a primary research. Then, compare the plans available in the insurance market and pick up a one based on your requirement.

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